Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,000. All ﬁve citizens will share an equal portion of this cost in taxes. The beneﬁt of the public
Good is $220 to Abby, $210 to Ben, $210 to Clara, $180 to Joe, and $120 to Matt. In a majority vote, this
Proposal will most likely be
A) accepted, four in favor and one against.
B) defeated, one in favor and four against.
C) accepted, three in favor and two against.
D) defeated, two in favor and three against.

Question

Quizplus · Accepted Answer

In order for the proposal to be accepted, at least three citizens must vote in favor.

If Abby, Ben, and Clara all vote in favor, then the proposal will have a total of $640 in benefits and $1,000 in costs.

If Joe and Matt both vote against the proposal, then the cost will be split among only three citizens (Abby, Ben, and Clara), resulting in a cost of approximately $333 per person.

Given the benefits and costs, it seems plausible that Abby, Ben, and Clara would vote in favor of the proposal while Joe and Matt would vote against it. Therefore, the proposal will most likely be accepted with three citizens in favor and two against.

Assume That Abby, Ben, Clara, Joe, and Matt Are the Only